Booming Costa Coffee brews up surge for Whitbread

Much of Whitbread's growth was due to new branches of Costa and Premier Inn,

Whitbread, the owner of Premier Inn and Costa Coffee, today toasted the Commonwealth Games, Lenny Henry and the cooler July for a 12.7% sales surge in the six months to the middle of August.

Much of that growth was due to new branches of Costa and Premier Inn, but like-for-like sales still rose 6.8%.

Chief executive Andy Harrison added the cheap hotels chain’s 9.2% jump in takings in the last quarter was helped by the Farnborough Airshow and the Commonwealth Games, as well as comedian Henry’s ad campaign.

Costa’s sales leapt 7.3%, aided by a weak warmer July last year.

Harrison, who drinks five cups of coffee a day, predicted that Costa’s new range of Old Paradise Street Roast posh coffee, named after its Lambeth roastery, will attract more aficionados.

The limited-roast coffee will cost 20p more than Costa’s standard Mocha Italia, with a cappuccino costing £2.65.

“But at Starbucks, it’s £2.60 for their standard one,” Harrison claimed. “And Costa is both cheaper and better. I go and test the competitors,” he added. “I’ve even stayed in a Travelodge. What did I think of it? I can’t tell you on the record.”